Filing a Chapter 11 bankruptcy is an option for businesses when it has a predictable, long - term income that is greater than
the liquidation value of its assets.
Secured debt allows the borrower to shift the lender's focus to
the liquidation value of assets rather than the borrower's creditworthiness.
Management claim the revalued asset backing of US$ 0.26, well north of the current unit price of $ 0.115, represents a realistic estimate of
the liquidation value of the assets.
In reality
the liquidation value of assets (even financial assets) is very different from their historical cost, or their market value, or the present value of their productive use.
Gladstone Capital Corp., a business development company, invests in US small and medium sized companies with EBITDA of $ 3 million, positive cash flows, strong competitive position in an industry,
liquidation value of assets and experienced management.
In many cases,
the liquidation value of the assets themselves aren't sufficient to pay back the debt.
More due diligence on asset values is determined before it enters into a commitment, and
the liquidation values of assets are determined and an in - depth understanding of the financial position of your company is completed to understand the present circumstances.
Not exact matches
«Goodwill is one
of the riskiest
assets that can be financed because it typically has no
liquidation value,» an SBA spokesman explained last week.
Accounting book
value is meant to measure the potential
assets available to investors in the event
of liquidation, and that's simply not a very useful measurement for most equity investors.
The offer does not exceed the
value of Toys «R» Us in a
liquidation of its
assets, said the person, who could not be identified because the decision to turn away the offer is not yet public.
Liquidation Value - The amount for which the
assets of the Company can be sold, minus the liabilities owed, e.g., the
assets of a bakery include the cake mixers, ingredients, baking tins, etc..
Loss on IRA
Liquidation In rare circumstances it can make sense to liquidate an IRA when your basis in the IRA exceeds the
value of the
assets.
«Common shares» is the legal term that typically refers to the corporation's class
of shares that holds the minimum rights described above (right to vote, right to receive dividends, right to residual
value of the corporation's
assets upon the corporation's
liquidation).
The right to receive the residual
value of the corporation's
assets upon the
liquidation of the corporation
But having a note means the investor has a kind
of liquidation preference - they will receive
value, if any, from the liquidating company's
assets, before the founders do.
These are businesses that aren't great or good businesses, but that are still FCF positive and trading at a significant discount to
liquidation value, after giving most
of the weight to current
assets and assigning little
value to fixed
assets.
When estimating the
liquidation value, Graham focused on tangible
assets — property, plant and equipment — the
value of which could be reasonably estimated.
An individual's
value to his creditors at time
of filing a consumer proposal comprises his
assets valued at
liquidation (auction) pricing (that may be a garage sale for your furniture and household goods, the wholesale cash buyer for your car, or the pawnbroker for your jewellery) after deducting exemption in prescribed, legislated amount (s) for car, household goods, clothing, tools
of the trade, medical aids, home, life insurance, pensions, RRSP, etc., which amounts to little or nothing for the large majority
of us, less than our debt in any case.
The company's balance sheet has, however, retained some
value (the «Book Value» column shows the assets as they are carried in the financial statements, and the «Liquidating Value» column shows our estimate of the value of the assets in a liquidat
value (the «Book
Value» column shows the assets as they are carried in the financial statements, and the «Liquidating Value» column shows our estimate of the value of the assets in a liquidat
Value» column shows the
assets as they are carried in the financial statements, and the «Liquidating
Value» column shows our estimate of the value of the assets in a liquidat
Value» column shows our estimate
of the
value of the assets in a liquidat
value of the
assets in a
liquidation):
To reiterate what we said in our January 6, 2009 letter and have repeated numerous times during our discussions with management, we believe that any action other than the immediate dissolution and
liquidation of the Company is an irresponsible waste
of corporate
assets and will result in a severe impairment
of shareholder
value.
The
liquidation value could be considerably higher again, as we have not included in the estimate the potential
value of the AV411
assets and program, which could be worth an additional $ 10M to $ 25M or between $ 0.30 or $ 0.65 per share.
Yet 37 days have passed since the failure
of Viprinex, «the sole major
asset of the Company,» without the Board communicating or enacting a plan designed to maximize shareholder
value through the dissolution and
liquidation of NTI
assets.
Our updated estimate for the company's net cash
value is set out below (the «Book Value» column shows the assets as they are carried in the financial statements, and the «Liquidating Value» column shows our estimate of the value of the assets in a liquidat
value is set out below (the «Book
Value» column shows the assets as they are carried in the financial statements, and the «Liquidating Value» column shows our estimate of the value of the assets in a liquidat
Value» column shows the
assets as they are carried in the financial statements, and the «Liquidating
Value» column shows our estimate of the value of the assets in a liquidat
Value» column shows our estimate
of the
value of the assets in a liquidat
value of the
assets in a
liquidation):
Chapman's oeuvre is «
asset - rich companies with battered stock prices» (WSJ.com subscription required) and he often operates in the universe
of stocks trading below
liquidation value.
Like TRID yesterday, MEMS has an veritable treasure trove on its balance sheet (the «Book
Value» column shows the assets as they are carried in the financial statements, and the «Liquidating Value» column shows our estimate of the value of the assets in a liquidat
Value» column shows the
assets as they are carried in the financial statements, and the «Liquidating
Value» column shows our estimate of the value of the assets in a liquidat
Value» column shows our estimate
of the
value of the assets in a liquidat
value of the
assets in a
liquidation):
IF Soap received something like 4.5 mm for software
asset sale, the rest
of the
liquidation items could come in at the minimum (including the lease terminations) and soap would still have a
value of appx.53, above its current.46.
We've written previously about Chapman's fondness for «
asset - rich companies with battered stock prices,» which sees him frequently operating in the universe
of stocks trading below
liquidation value.
I recently bought into a European company that trades at about 1/3
of its hard
asset liquidation value.
If you own
assets with
values over allowed dollar limits, the Trustee can force
liquidation (sale)
of these «non-exempt»
assets and turn over the cash
value to your creditors.
Greenbackd is so called because it was initially solely devoted to stocks trading at a discount to net cash
value (stocks backed by a surplus
of Greenbacks, hence «Greenback'd»), net current
asset value, negative enterprise
value, or
liquidation value.
Any shareholders remaining in the fund on the distribution date will automatically have their shares redeemed for cash at the net
asset value as
of the
liquidation date.
The first being Benjamin Graham's net current
asset value method that looks for companies trading for less than two - thirds their current
assets less all their liabilities, which is a rough measure
of their
liquidation value.
Liquidation value is calculated by discounting the
value of all
assets, including non-current, by factors that seem appropriate to the nature
of the
assets and their marketability.
We estimate ESIO's stand alone liquidating
value at around $ 277M or $ 10.12 per share, which is 54 % higher than its close, as the following summary analysis demonstrates (the «Carrying» column shows the
assets as they are carried in the financial statements, and the «Liquidating» column shows our estimate
of the
value of the
assets in a
liquidation):
Here is the
liquidation value analysis based on its most recent quarterly financial statement to September 30, 2009 (the «Book Value» column shows the assets as they are carried in the financial statements, and the «Liquidating Value» column shows our estimate of the value of the assets in a liquidat
value analysis based on its most recent quarterly financial statement to September 30, 2009 (the «Book
Value» column shows the assets as they are carried in the financial statements, and the «Liquidating Value» column shows our estimate of the value of the assets in a liquidat
Value» column shows the
assets as they are carried in the financial statements, and the «Liquidating
Value» column shows our estimate of the value of the assets in a liquidat
Value» column shows our estimate
of the
value of the assets in a liquidat
value of the
assets in a
liquidation):
IKAN's balance sheet has some
value (the «Book Value» column shows the assets as they are carried in the financial statements, and the «Liquidating Value» column shows our estimate of the value of the assets in a liquidat
value (the «Book
Value» column shows the assets as they are carried in the financial statements, and the «Liquidating Value» column shows our estimate of the value of the assets in a liquidat
Value» column shows the
assets as they are carried in the financial statements, and the «Liquidating
Value» column shows our estimate of the value of the assets in a liquidat
Value» column shows our estimate
of the
value of the assets in a liquidat
value of the
assets in a
liquidation):
The following summary analysis assumes that ESIO buys back $ 100M
of stock at $ 6.56 and shows ESIO after the buy back is complete (the «Carrying» column shows the
assets as they are carried in the financial statements, and the «Liquidating» column shows our estimate
of the
value of the
assets in a
liquidation):
The following summary analysis shows ESIO after the merger with ZIGO is complete (the «Carrying» column shows the
assets as they are carried in the financial statements, and the «Liquidating» column shows our estimate
of the
value of the
assets in a
liquidation):
The company's hard
asset value (which excludes the PDL biotechnology business intellectual property) rests mainly on its holding of cash and equivalents contributed by PDL (the «Book Value» column shows the assets as they are carried in the financial statements, and the «Liquidating Value» column shows our estimate of the value of the assets in a liquidat
value (which excludes the PDL biotechnology business intellectual property) rests mainly on its holding
of cash and equivalents contributed by PDL (the «Book
Value» column shows the assets as they are carried in the financial statements, and the «Liquidating Value» column shows our estimate of the value of the assets in a liquidat
Value» column shows the
assets as they are carried in the financial statements, and the «Liquidating
Value» column shows our estimate of the value of the assets in a liquidat
Value» column shows our estimate
of the
value of the assets in a liquidat
value of the
assets in a
liquidation):
That significant capital investment, while not reflected in earnings, still persists on the balance sheet (the «Carrying» column shows the
assets as they are carried in the financial statements, and the «Liquidating» column shows our estimate
of the
value of the
assets in a
liquidation):
Instead
of the maximization
of shareholder
value (the number one goal
of a corporation according to Aswath Damodaron) we witnessed a good ol' boy board
of directors sit back and allow an entrenched management team to either lose or steal millions
of assets (at one million a year in salary on a 10MM company, its stealing or akin to stealing no matter what actually happened to the $ 8 per share
of liquidation value you mentioned that the company had... just one year ago)... and it raises goosebumps wondering where the millions
of dollars actually went... just as I am sure Bernie Madoff's investors are wondering where there money is...
We have adjusted the September 10Q balance sheet to account for the sale
of the SEN JV and to back out several other payments and projected it forward to March (the «Book
Value» column shows the assets as they are carried in the financial statements, and the «Liquidating Value» column shows our estimate of the value of the assets in a liquidat
Value» column shows the
assets as they are carried in the financial statements, and the «Liquidating
Value» column shows our estimate of the value of the assets in a liquidat
Value» column shows our estimate
of the
value of the assets in a liquidat
value of the
assets in a
liquidation):
We believe CTO is trading at a massive discount to the
value of its underlying
assets and that a
liquidation or substantial
asset sale is in the best interests
of the CTO shareholders.
February 17, 2016 Wintergreen Advisers, LLC is pleased that Consolidated - Tomoka Land Co. has hired Deutsche Bank to pursue the directive
of Wintergreen's Proxy Proposal: to explore strategic alternatives to enhance shareholder
value, including the possible
liquidation of assets or the sale
of the company.
This could be an important factor depending on the
value of the
asset, because Chapter 7 is technically a
liquidation.
One reason for calling such purchases bargain issues is that usually net - current -
asset values may be considered a conservative measure
of liquidation value.
A large part
of these receivables are the tax
assets created in the Sapec transaction, but they also contain the DNIB Unwind (
liquidation trust) shares at cost and the remaining Primo Water shares held in escrow at market
value.
Net - net
asset value: Companies, where the sum
of the current
assets (adjusted to reflect
liquidation value) exceed the sum
of all its short and long term debt obligations with at least 30 %, can be characterized as net - nets if the sum
of this calculation exceeds the current market
value / trading price.
I ended November with a Net
Liquidation Value (NLV)
of $ 90,956.43 and a Net
Asset Value (NAV)
of $ 90,985.79 according to Interactive Brokers (IB) after finishing October with an NLV
of $ 84,028.47.
He calculated NNWC by discounting the current
asset value of stocks in line with Graham's
liquidation value discounts, but excludes the «Fixed and miscellaneous
assets» included by Graham.